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Returns From AI Projects ‘Dismal’, Survey Finds – Register

AI has yet to pay off for firms trying to make it work, plus the cost of such projects has raised 14 times since last year and there were many concerns about the accuracy of responses


An AI sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China
An AI sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China. Photo: Reuters.

 

Businesses around the world have become more cautious about investing in artificial intelligence because of concerns over the cost, plus data security and safety, according to a report by The Register, which cited a study over the past two months by Lucid-works, a firm provider of e-commerce search and customer service applications, which drew responses from 1,000 companies with 100 or more employees across 14 industries said to have active AI initiatives underway.

The survey found that 63% of global companies plan to increase spending on AI in the next year, compared to 93% in 2023 when Lucidworks conducted an initial survey, it said, noting that AI has yet to pay off for firms trying to make it work, plus the cost of such projects has raised 14 times since last year and there were many more concerns about the accuracy of responses.

“Unfortunately, the financial benefits of implemented projects have been dismal,” the study said, adding that “42% of companies have yet to see a significant benefit from their generative AI initiatives,” while a senior director involved with data science said “the costs involved in using generative AI strategically can really add up.”

Read the full report: The Register.

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.

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